Unified Communication as a Service (UCaaS) Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[232+ Pages Report] According to the report published by Facts Factors, the global unified communication as a service (UCaaS) market size was worth around USD 26 billion in 2022 and is predicted to grow to around USD 150.5 billion by 2030 with a compound annual growth rate (CAGR) of roughly 20.1% between 2023 and 2030. The report analyzes the global unified communication as a service (UCaaS) market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the unified communication as a service (UCaaS) market.

Market Overview

UCaaS refers to the cloud-based integrated solution revolving around tools used for collaboration and communication into a uniform and single platform. The industry deals with the generation, marketing, and delivery of the platform and related services. It includes organizations and businesses working towards deploying such platforms with the help of a subscription-based revenue system. UCaaS platforms or solutions typically include features like file sharing, video calling, web conferencing, email, and messaging.

The services are mostly hosted using cloud technology allowing users to access the services from anywhere in the world using any device that is equipped to handle such advanced features. This allows UCaaS solutions to become an ideal choice for companies that employ remotely working employees or have distributed teams but require constant communication for business purposes. Furthermore, such platforms allow seamless communication across devices and locations. The industry is expanding rapidly and is projected to reach new heights in the coming years.

Key Insights

• As per the analysis shared by our research analyst, the global unified communication as a service (UCaaS) market is estimated to grow annually at a CAGR of around 20.1% over the forecast period (2022-2030)
• In terms of revenue, the global unified communication as a service (UCaaS) market size was valued at around USD 26 billion in 2022 and is projected to reach USD 150.5 billion, by 2030.
• The market is projected to grow at a significant rate due to the growing demand for enterprise mobility
• Based on architecture segmentation, multiple tenant was predicted to show maximum market share in the year 2022
• Based on industry segmentation, IT & telecom was the leading industry in 2022
• On the basis of region, North America was the leading revenue generator in 2022

Growth Drivers

• Growing demand for enterprise mobility to propel market growth

The global unified communication as a service (UCaaS) market is projected to grow owing to the increasing demand for enterprise mobility. It refers to the growing trend in which people make use of portable or mobile devices for conducting business operations. This trend includes measures taken to provide employees with necessary access to business-related data on laptops, tablets, smartphones, and other appropriate devices. With the growth in remote work culture, demand for enterprise mobility is at an all-time high which was further pushed as an impact of Covid-19.

Furthermore, businesses have become more decentered due to the dynamic nature of enterprise activities further leading to company management accepting flexible ways of managing work since it assists in improving the performance efficiency of employees thus impacting business profits. Additionally, UCaaS, when used appropriately, can be highly cost-effective, justifying the expense associated with deploying and maintaining such systems. Since these services can be accessed by the subscription model, companies have higher decision-making in terms of using the services depending on business needs.

Restraints

• Growing security concerns to restrict market expansion

As the demand for UCaaS solutions has increased leading to a higher adoption rate, enterprise data is more at risk of being vulnerable to security concerns or threats. The digital world is already registering a high rate of cybercrime leading to virus or malware attacks along with growing incidences of data breaches. This can severely hamper the use of UCaaS services in the long run.

Opportunities

• Growing adoption of cloud technology to promote higher growth

Cloud technology has gained high momentum over the years and is currently one of the most popular and high-potential segments of the digital world. Although it has been in existence for many years, the consumer database and client list have increased in the last couple of years. The growing adoption and integration of cloud systems with other technology are expected to provide higher growth opportunities during the forecast period. Cloud-based UCaaS systems can offer high cost-efficiency and performance index.

Challenges

• Issues surrounding interoperability to challenge the market expansion

When different types of UCaaS solutions originating from a variety of service providers are brought under one roof, it may be difficult for them to interpolate and this is a significant challenge for market players to manage. There are research & innovation activities that are undertaken by various companies to solve the issue but there is a lot of scope for improvement. Furthermore, resistance to change amongst businesses is an important personal trait that service providers may struggle with in the coming years.

Segmentation Analysis

The global unified communication as a service market is segmented based on industry, deployment, architecture, enterprise size, and region

Based on industry, the global market segments are real estate, education, automotive, legal, hospitality, IT & telecom, healthcare, education, and others

• In 2022, the global market registered the highest growth in the IT & telecom sector due to increased application of the services as a result of industrialization and rapid rate of commercialization
• Healthcare is an important segment of the industry. UCaaS solutions allow medical professionals to carry out telemedicine with the aid of communication systems
• Due to the impact of Covid-19, the demand for telehealth and digital medicine increased after 2020 as many people resorted to opting for digital health services
• The education segment uses UCaaS to conduct communication between teachers and students, for remote learning, and other educational activities

Based on deployment, the global market is divided into on-premises and cloud.

Based on architecture, the global market divisions are multiple-tenant and single tenant

• The global market registered the highest growth in the multiple-tenant segment in 2022 due to a higher adoption rate
• In this type, multiple users can access a single instance of a UCaaS platform using shared infrastructure. This system is more cost-effective and offers efficient resource management
• Single tenancy software is dedicated per user and offers customization and better control
• In August 2021, Microsoft Teams, a leading UCaaS reported more than 140 million active users daily

Based on enterprise size, the global market divisions are large and small & medium.

Recent Developments:

• In November 2021, Tata Communications, the digital wing of Tata Group, announced the launch of a new end-to-end managed UCaaS program called GlobalRapide meant for easing enterprise communication. The platform is enabled to assist enterprises in identifying the most suited collaboration platform. It will also aid in the migration and management of collaboration solutions
• In September 2020, NetFortris Inc., a leading provider of UCaaS solutions, launched NetFortris Comm-unity. The platform will work by combining software that the company gained when it acquired Fonality in 2017 along with its advanced telephone engineering heritage
• In March 2022, RingCentral, a US-based UCaaS solutions provider, unveiled two new platforms for the education sector. The products will be enabled with messaging, phone, and video services that will be customized to meet the requirements of the education sector

Report Scope

Regional Analysis

• North America to register the highest CAGR

The global unified communication as a service (UCaaS) market is anticipated to register the highest CAGR in North America as it has in previous years. The US may emerge as the dominant territory making significant contributions to the regional market. There are several factors that work in the favor of anticipation. For instance, the US is home to Silicon Valley, a region that is known to foster world-changing startups.

Furthermore, the growing adoption of cloud-based systems and increasing investment in research & development to help the region maintain its dominance in the technology world, which is currently threatened by the growth in other parts of the world like China, India, and Japan, could act as major growth contributors. Additionally, increasing adoption of remote work culture, work-from-home policies, and flexible work environments could lead to higher demand for customized collaboration platforms depending on business requirements.

Competitive Analysis

• 8x8, Inc. 
• Cisco Webex 
• Microsoft Teams 
• Mitel 
• Google Meet 
• Zoom 
• Avaya 
• Vonage 
• LogMeIn 
• Broadsoft 
• Slack 
• RingCentral 
• GoToMeeting 
• Fuze 
• StarLeaf 
• Jive Communications 
• Intermedia Unite 
• BlueJeans

The global unified communication as a service market is segmented as follows:

By Industry Segment Analysis

• Real Estate
• Education
• Automotive
• Legal
• Hospitality
• IT & Telecom
• Healthcare
• Others

By Deployment Segment Analysis

• On-Premises
• Cloud

By Architecture Segment Analysis

• Multiple Tenant
• Single Tenant

By Enterprise Size Segment Analysis

• Large
• Small & Medium

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America